Forex Brokers: Things To Look For & Watch Out For In A Forex Broker
This is an old thread, I ran a search to see how many threads I could find on this topic - none?
I should probably start a new thread on this specific topic but I will comment here and see if it attracts any attention or input of others.
What I am curious about is your experience with brokers for clients residing in European nations (or the US even) that are either EU members or the UK. Regulations are very strict and restrictive for EU and UK residents. I find this bothersome because I want an account that can be used for specific purpose of testing when trying new trade systems and it is especially important to me when testing EA's. I want real market prices and conditions for trade results to be accurate and real.
I know there are still some brokers that are totally unregulated that operate from central America but I forget their names and if they offer what I need. I probably have to resort to a broker that is totally unregulated until I can get something reasonable from the UK or outside of US,UK and EU, because EU regulators have seriously disabled or restricted our choice and how we can trade. They have taken that choice away from us and made risk more higher by lowering leverage. It means we now need to use far higher capital or risk blowing a small capital. When we could otherwise use high leverage and low volume trading to reduce the risk. Instead of promoting better education for new retail traders the US and EU regulators have punished all retail clients.
If you know of any cents or nano accounts that can be opened from EU or UK regulation/jurisdiction then please leave a reply here. I have looked at the few brokers that still offer cents accounts and none of them allow customers from America, EU and UK to use their services. I find this odd because some brokers that are outside of the UK, USA and EU do allow those clients to open accounts with them still (leverage far exceeding stupid EU and US regulators allow) even though they have no regulation in those jurisdictions, nations or regions. So even if this is a broker that is totally unregulated I would be happy to go with them at this point and deposit a few dollars to test my various systems and experts. If things do not change then I am considering to buy residence permit/visa for other countries so I can open accounts then, something to think about for the future but until then I need help. Thank you.
This is an old thread, I ran a search to see how many threads I could find on this topic - none?
I should probably start a new thread on this specific topic but I will comment here and see if it attracts any attention or input of others.
What I am curious about is your experience with brokers for clients residing in European nations (or the US even) that are either EU members or the UK. Regulations are very strict and restrictive for EU and UK residents. I find this bothersome because I want an account that can be used for specific purpose of testing when trying new trade systems and it is especially important to me when testing EA's. I want real market prices and conditions for trade results to be accurate and real.
I know there are still some brokers that are totally unregulated that operate from central America but I forget their names and if they offer what I need. I probably have to resort to a broker that is totally unregulated until I can get something reasonable from the UK or outside of US,UK and EU, because EU regulators have seriously disabled or restricted our choice and how we can trade. They have taken that choice away from us and made risk more higher by lowering leverage. It means we now need to use far higher capital or risk blowing a small capital. When we could otherwise use high leverage and low volume trading to reduce the risk. Instead of promoting better education for new retail traders the US and EU regulators have punished all retail clients.
If you know of any cents or nano accounts that can be opened from EU or UK regulation/jurisdiction then please leave a reply here. I have looked at the few brokers that still offer cents accounts and none of them allow customers from America, EU and UK to use their services. I find this odd because some brokers that are outside of the UK, USA and EU do allow those clients to open accounts with them still (leverage far exceeding stupid EU and US regulators allow) even though they have no regulation in those jurisdictions, nations or regions. So even if this is a broker that is totally unregulated I would be happy to go with them at this point and deposit a few dollars to test my various systems and experts. If things do not change then I am considering to buy residence permit/visa for other countries so I can open accounts then, something to think about for the future but until then I need help. Thank you.
There are many brokers, that are regulated by EU countries, but that still offer account types that are not limited to 1:30 leverage or other such EU conditions. These are brokers that have multiple branches in different parts of the world and are regulated by multiple regulatory bodies, and for which the customer can choose which regulatory body they wish their account to be associated with.
In my case, I currently work with four brokers, one for which I have chosen the Portuguese regulator in my own country, another for which I have chosen the regulator in Belize, and another for which I chose Cyprus and one regulated in the USA. All are licensed and regulated by multiple bodies. All are reputable and well known, three of which are advertised on MetaQuotes' own website, but I will not mention any of them by name, as it goes against the forum rules.
I have different types of accounts, some with 1:30 leverage, others with 1:500, some with USD as account currency and others with EUR as account currency. I don't have any cent accounts, not because I can't have any, but because I don't want them.
I would say look out for good regulation from top-tier regulators such as ASIC or FCA and watch out for bonus offering brokers because they could be scammers.
Regulation is important in choosing a broker, but it is also important to look at their trading conditions and other factors.
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Finding the right Forex broker can be tough, sometimes it can be a tougher task than trading itself. When looking for a FX broker, there's so many things to consider. It's important to consider the country their based in, independent reviews from other traders, the minimum deposit the broker allows for, the type of platform the broker has etc.
Here's just a few things to start with when looking for the Forex broker you want to trade with:
Broker Reputation
We've all heard that it's important to look at a broker's reputation to make sure they're not "scamming" people, it sounds cliche. Well this is a legitimate concern. Every Forex broker is going to tell you "we have the best spreads, we have the best trading, you can make the most pips with us, great bonuses blah blah" but the truth is, there's a lot of brokers out there that will take your money & run.
Let me give you a quick example. One of the most popular FX brokers, with offices in many countries, pulls a simple trick that just a select few (one's that I personally would steer clear of) use to make some extra money from their traders (us), it's called a margin call.
A margin call is when a broker decides to close a trade because they think the trader has lost too much money or will lose too much money even before the stop loss is hit, it's very subjective.
This can cause a trader to lose money, lots of it, especially if their in the middle of a drawdown which is when a broker's most likely to issue a "margin call"
Point: Before signing up with a broker, ask a customer service rep or look on the FAQ if they do margin calls.
Forex Broker Bonuses
Ah the good ole bonus. Having a great broker bonus can really help you make more pips & earn the most money possible from your FX account. There's many kinds of bonuses, including competition bonuses, sign up bonuses, no deposit bonuses (great to get started free & learn the ropes).
Some brokers offer $1,000 to get started or, better yet in some cases an additional 10% of your initial deposit when you first start trading